questions asked:
I bought a house in 2007. I haven’t lost value “yet” but I can forsee it coming. With the market the way it is I would try and sell but that would be a waste of time. I might consider staying in the house for a few more years and try and wait out the current housing if I slump if I can get the PMI taken off of my loan and the interest rate lowered. My LTV will never gain 20% soon so that I can drop my PMI and I don’t have 20% in cash. I take care of my parents who just had an episode and a two story house is something that can’t be done for health reason anymore. Scenario #1 – My question is can I threaten foreclosure to my lender and “BULLY” them to drop my PMI and refinance me into a lower rate given the current state of housing and all the foreclosures? OR Scenario #2 – Can I ask to purchase a lender owned home foreclosed home or lessor value and they eat up half of my loan rather than me foreclosing and leaving them with the full balance?
Renee
I bought a house in 2007. I haven’t lost value “yet” but I can forsee it coming. With the market the way it is I would try and sell but that would be a waste of time. I might consider staying in the house for a few more years and try and wait out the current housing if I slump if I can get the PMI taken off of my loan and the interest rate lowered. My LTV will never gain 20% soon so that I can drop my PMI and I don’t have 20% in cash. I take care of my parents who just had an episode and a two story house is something that can’t be done for health reason anymore. Scenario #1 – My question is can I threaten foreclosure to my lender and “BULLY” them to drop my PMI and refinance me into a lower rate given the current state of housing and all the foreclosures? OR Scenario #2 – Can I ask to purchase a lender owned home foreclosed home or lessor value and they eat up half of my loan rather than me foreclosing and leaving them with the full balance?
Renee
Bernice
As much as we want to play the card that makes us call the shots, we have no room for reason after the closing is final from 2007. But that is not a negative answer. There are other ways to get off PMI. I will need more info from you on the house purchase price and the current value and length of owner ship and current lender.
In your favor the bank doesn’t want to be a real estate agent so they really rather work a deal with you rather than foreclose – on the other hand they also will not be bullied or deal with irrational ideas and definitely no threats on them eating the difference of the loan. It is in all the choice of wording and mechanics of proper positioning the situation at hand. Trust me I have been doing this for ten years. I may be able to assist you in this.
What is exactly what you want and need? Thank you and Good Luck.
Comment by annacalbanese — August 7, 2010 @ 7:31 pm
Fred
You have no leverage in this current market with the lender but you can still ask for refiancing. You have t talk to the right dept at your lender. Call and ask to speak with the Loss Mitigation dept who can help you with not only refiancing but there are plenty of other options without threatening the lender. You won’t get anywhere with the threats as they will simply start returning your payments, make you 3 months behind and then foreclose on you. Don’t let them control you and ruin your credit.
Comment by hollywoodmelody — August 8, 2010 @ 5:48 pm
Wesley
ouch……….PMI= the mortgage insurance???
ouch..
you have to change your thoughts……….
wonderful that your taking care of your parents
is this new? the parents?
i was able to get a “forgiving loan” to modify my home when my son was first disabled..it was available for the first year only..and i had to show the changes…
as such………would you be able to put on a “nanny suite addition”.????
have you asked for a “free appraisal” of the estimated value?
is the house worth more.?? or less?
now if the home is worth less than you bought..the bank may offer a blended (at no charge) to modify your payments..
now this may sound big..but in essence it may only be $10 a month..
i would look at the……loans available for you making the commitment to look after your aging parents……and to modify the home..or to use..the loan with the equity you may get from your existing home..and to get /buy another home that meets your needs..
Comment by m2 — August 10, 2010 @ 1:30 am
Tom
They would not go for either scenario. 3% of homes are in foreclosure, if you want to join that crowd they will let you but they are not going to forfeit the money they already gave you and let you walk away with your credit intact and the house to boot.
You need to either sell it, pay the amount you agreed to pay when they handed the cash over to you, or foreclose and accept the consequences of that.
You agreed to the interest rate and PMI in 2007 and signed a contract binding you to that contract. It is exactly the contract you wanted, it was not forced on you at gun point. You picked it, now do the decent thing and keep your word.
Comment by Landlord — August 11, 2010 @ 6:46 pm